The President of the Ghana Union of Traders’ Association (GUTA), Clement Boateng, has urged banks to make credit more affordable for businesses, arguing that although lending rates have begun to decline, the cost of borrowing remains prohibitively high for many enterprises.

According to him, businesses are able to meet the requirements for accessing credit, but the high interest rates attached to loans continue to discourage investment and expansion.

Speaking at Channel One TV’s Quarterly Economic Outlook, themed “A Mid-Year Review of the Ghanaian Economy: Progress, Risks and Outlook,” on Thursday, July 9, he highlighted affordable financing as one of the biggest challenges confronting the private sector.

He acknowledged the banking industry’s concerns about the risks associated with lending, particularly the lengthy judicial process for recovering defaulted loans, but maintained that businesses require more favourable lending conditions to thrive.

“They are saying that in Ghana, if somebody defaults and you take the person to  court, it will take five or 10 years before the case is determined. These are some of the factors that account for them not being able to reduce their lending rates so much,” he said.

Mr. Boateng, however, noted that businesses are more concerned about the affordability of credit than its availability.

“We have always been saying that even though facilities are accessible, they are not affordable. If you have your documents and everything is in order, the banks can give you the money, but affordability is the issue because we think lending rates are still high,” he explained.

He further argued that high borrowing costs are particularly challenging for businesses investing in manufacturing, where production often takes months before any revenue is generated.

Clement Boateng also reiterated his call for banks to diversify their sources of income instead of relying heavily on interest earnings, saying lower financing costs would strengthen businesses and support broader economic growth.